7 Salient Features That Make Virtual Bookkeepers Popular

Managing the finance department and keeping track of all your expenses and payments is one of the most tedious parts of any business. Not only that, it must be accurate and forms the backbone of your success. The easiest solution is to seek help from professional accountants and bookkeepers who will handle these for you. These services are available virtually these days alongside the conventional remote methods.

This post discusses why virtual bookkeeping services are so popular, their benefits, and how they work.

Defining Virtual Bookkeeping and How is Works

This method allows the bookkeeper to work remotely from anywhere instead of working at the client’s office. Advanced computerized software which are cloud-based is used to provide the services. This information is easily accessible as it seamlessly syncs with the cloud and is constantly updated by the virtual bookkeeper meaning you can access it any time and from anywhere.

The following are the steps of how this service functions:

• The business grants remote access to the bookkeeper or accountant to their server, software and all the financial documents.
• The accountant or bookkeeper is provided read-only access and can categorize the transactions. The payments will be processed only on approval from your end.
• The software must be purchased by the business owner or the bookkeeper/accountant depending on the arrangements they have and register.
• The customization in the software must be made so that it ideally fits your requirements. However, the same program has to be used on both ends for a seamless process.
• You can easily get in touch with your virtual bookkeepers regarding the service or to get feedback and advice on tax strategies and more.

What a Virtual Bookkeeper Can Do for Your Business

Once you know how virtual bookkeeping works and the features that make virtual bookkeepers so popular, it’s time to understand how they can help you specifically. Here’s what these financial professionals can do for your business.

1) Reconciliation of Bank and Credit Card Transactions

Reconciling monthly bank and credit card statements and reviewing your general ledger accounts at regular intervals is essential to detecting errors or fraud and ensuring the accuracy of transactions. With help from a virtual bookkeeper, all data will be reconciled regularly with monthly statements so you can find any discrepancies in your bank and credit card balances.

2) Management of Accounts Payable and Accounts Receivable

A virtual bookkeeper manages your accounts payable and receivable efficiently. They organize your bills by their due dates, prepare an updated report of what needs to be paid, and send invoices (and present them for payment). They’ll also follow up on payments and make collection calls on your behalf, so you stay stress-free.

3) Liaison with Your CPA

Your virtual bookkeeper acts as a liaison with your CPA. They will also coordinate with your accounting team to ensure that all bookkeeping and reports are as per set norms to produce accurate results. They can also act on your behalf and meet with the accountant about tax queries.

4) Maintenance of General Ledger

One of the most basic and crucial functions in a business is maintaining an accurate general ledger. Doing so helps you compile your key financial statements (including profit and loss, balance sheet and cash flow), evaluate profitability and liquidity, and gauge your business’s overall financial health. That’s where a virtual bookkeeper plays a vital role. They will make ledger entries, record expenditures and receipts, assign each entry to an appropriate account, and make sure records are error-free to enable accurate cash flow.

5) Payroll Support

The services offered by a virtual bookkeeper vary depending on the needs of your business. Some bookkeepers, for instance, fulfil payroll, especially for small businesses. This includes assisting with the processing of employee paycheques and tax payments so that your payroll process is up to date and your business complies with all payroll taxes.

6) Creation of Budgets and Forecasts

Although a virtual bookkeeper won’t create your budget, they can certainly help you do so by advising on how to improve your business. Since they prepare profit and loss (P&L) reports, balance sheets and closely observe your business’s finances, they know exactly how much money you’re earning or losing. This data is crucial for making forecasts and strategies.

7) Generation of Updated Reports

Curating your financial data is one of your virtual bookkeeper’s primary responsibilities. They will ensure prompt submission of weekly or monthly financial reports so that you always have the right financial data when you need it. As a result, you never have to put crucial financial or investment decisions on hold.

Virtual bookkeeping services are very popular these days for the flexibility and control they allow business owners over their finances. The above-mentioned features are what you can expect when you hire a virtual bookkeeper. They will help with many crucial tasks including bank and credit card statement reconciliation, general ledger maintenance, bill payments, and invoice generation and collection. Hopefully, this guide will make it easier to choose the most suitable virtual bookkeeping services and understand how they can help maximize your business’s productivity.